Luxembourg Unions LCGB and OGBL Escalate Fight Against Government Policies

May 4, 2025

Luxembourg’s two major trade unions, the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB), have intensified their opposition to the government, metaphorically “taking off the velvet gloves” to signal a shift from diplomacy to confrontation. This escalation, highlighted by their militant Labour Day speeches on May 1, 2025, reflects growing frustration with the CSV/DP coalition government’s policies on collective bargaining, shop opening hours, and perceived attacks on union rights. The unions’ united front, a historic alignment since October 2024, has culminated in threats of a general strike and a planned nationwide demonstration, underscoring their resolve to defend workers’ rights in a rapidly evolving economic landscape.

A United Front Against Government Policies

The OGBL and LCGB, once rivals, have forged a powerful alliance to counter what they see as an assault on Luxembourg’s social model. On Labour Day, OGBL President Nora Back, speaking to around 100 unionists at Neumünster Abbey, warned the government against ignoring union demands, threatening “extreme measures” such as a general strike if dialogue fails. LCGB President Patrick Dury, addressing 1,000 members in Remich, accused the government of slandering unions and acting as the “gravedigger of our social model.” Both leaders criticized proposals allowing employee groups to sign collective bargaining agreements without union involvement, viewing it as a direct threat to their influence.

This unified stance marks a significant shift. Historically, the OGBL and LCGB competed for influence, but their collaboration since October 8, 2024, has strengthened their bargaining power. Back emphasized this unity, stating, “The trade unions’ front is what scares our opponents in the patriarchy and in politics,” signaling a new era of coordinated resistance.

Taking Off the Velvet Gloves

The phrase “taking off the velvet gloves” draws from the idiom “an iron fist in a velvet glove,” implying a move from restrained, diplomatic negotiations to assertive, uncompromising action. In the past, both unions have successfully negotiated job retention plans, such as with G4S in 2021, where they prevented 80 layoffs through internal reorganization and secured severance packages for up to 15 potential redundancies. Similarly, in 2021, G4S avoided 60 layoffs after winning new contracts, with OGBL’s Michelle Cloos noting a need for recruitment instead of downsizing. These victories showcased the unions’ ability to wield influence with a “velvet glove” approach.

However, recent government policies have pushed the unions to adopt a harder line. Dury’s description of a “paradigm shift” under Prime Minister Luc Frieden’s administration reflects concerns over reduced social dialogue and policies that undermine union authority. The unions are particularly incensed by proposals to extend shop opening hours, which they argue could erode workers’ rights, and the government’s portrayal of unions as “backward.” In response, they have planned a nationwide demonstration on June 28, 2025, in Luxembourg City to “defend trade union rights and freedoms.”

Context and Economic Stakes

Luxembourg’s economy, heavily reliant on financial services and cross-border workers, faces pressures from global economic shifts, including US tariffs and regional competition. The OGBL and LCGB have a history of securing strong collective work agreements (CWAs), such as the 2012 Cargolux extension and the 2019 lux-Airport CWA, which increased meal vouchers to €10.80 and eliminated negative pay scales. These agreements underscore their role in maintaining high labor standards. However, the government’s push for flexibility in collective bargaining threatens to dilute these gains, prompting the unions to escalate their tactics.

Social media sentiment on X reflects mixed views. Some users praise the unions’ resolve, with one post noting, “OGBL and LCGB are finally showing teeth—about time!” Others criticize the strike threats as disruptive, arguing that Luxembourg’s economic stability depends on compromise. The unions’ actions also resonate beyond Luxembourg, with European labor groups watching closely as a test case for resisting neoliberal reforms.

Implications and Next Steps

The OGBL and LCGB’s decision to “take off the velvet gloves” signals a high-stakes confrontation with the government. The planned June 28 demonstration and the looming threat of a general strike—the first seriously considered in decades—could disrupt Luxembourg’s economy, particularly in transport, logistics, and retail. Prime Minister Frieden’s attendance at the Labour Day rally and Deputy Prime Minister Xavier Bettel’s planned LCGB visit suggest the government is aware of the rising tensions, but the unions remain skeptical of meaningful concessions.

As the unions mobilize, their ability to maintain unity and public support will be critical. Their past successes, such as averting G4S layoffs, demonstrate their negotiating prowess, but the current battle requires navigating a politically charged environment. With Luxembourg’s social model at stake, the OGBL and LCGB are poised to redefine labor relations in the Grand Duchy, potentially setting a precedent for European trade unions facing similar challenges.